BTP Green, New 5 Billion Euro Issue by Italian Government Coming Soon

The Italian Ministry of Economy and Finance (MEF) is starting the new year with a major public debt transaction. The closing of the “dual tranche” issue is expected today, which includes a new BTP Green maturing on 30 April 2046 and a new 10-year benchmark BTP maturing on August 1st, 2035.

The issue, for a maximum amount of 5 billion euros, will be carried out through a banking syndicate, with the mandate entrusted to Banca Monte dei Paschi di Siena, BNP Paribas, Citibank Europe Plc, Crédit Agricole , NatWest Markets and UniCredit. As specified by the MEF, “the transaction will be carried out in the near future, in relation to market conditions.”

BTP Green, Italian government bonds aimed at financing initiatives with environmentally sustainable impacts , fall within the reference framework published by the MEF on 25 February 2021. This framework identifies the environmental categories financed, in line with the six objectives of the European Taxonomy of sustainable activities and the United Nations Sustainable Development Goals ( SDGs ).

The funds raised with the Green BTPs issued in 2025 will be distributed among all the categories envisaged by the reference framework, with a particular focus on two main areas:

Energy efficiency of buildings , largely intended for the energy requalification of the Italian real estate assets.

Sustainable transport , with investments in railway infrastructure, electrification of routes, promotion of sustainable means of transport and support for rail mobility.

While the framework allows for the financing of sustainable expenditure included in the state budget of the current year and the three previous years, the majority of the funds will be concentrated on expenditure in 2024 and 2025.

Last May, the BTp Green maturing in October 2037 recorded a record demand of 84.4 billion euros, of which 80% came from foreign investors. The Treasury managed to place 9 billion euros at a price of 99.865, with a gross yield at issuance of 4.104% and an annual rate of 4.05%, payable in two semi-annual coupons.

This figure represents the highest value ever reached for an Italian green bond, slightly exceeding the 83 billion raised in March 2021 with the debut of the first BTp Green maturing in 2045.

__

(Featured image by Ozkan Guner via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in  ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us